-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, O6baEtj8F4OYnDqgNlkRETFxjtS/jiPL+sUF9Grno1LkjDUAtglu6pgd9T76hfm7 89uPRk9hjYdQVGpM9jj6Xg== 0000801748-04-000012.txt : 20040813 0000801748-04-000012.hdr.sgml : 20040813 20040813153417 ACCESSION NUMBER: 0000801748-04-000012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040813 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040813 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEMACARE CORP /CA/ CENTRAL INDEX KEY: 0000801748 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090] IRS NUMBER: 953280412 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-15223 FILM NUMBER: 04974121 BUSINESS ADDRESS: STREET 1: 21101 OXNARD STREET CITY: WOODLAND HILLS STATE: CA ZIP: 91367 BUSINESS PHONE: 818-226-1968 MAIL ADDRESS: STREET 1: 21101 OXNARD STREEET CITY: WOODLAND HILLS STATE: CA ZIP: 91367 8-K 1 rel8k2q.txt FORM 8-K DATED AUGUST 13, 2004 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 13, 2004 HEMACARE CORPORATION (Exact Name of Registrant as Specified in its Charter) CALIFORNIA (State or other jurisdiction of incorporation) 000-15223 95-3280412 (Commission File No.) (IRS Employer Identification No.) 21101 Oxnard Street Woodland Hills, CA 91367 (Address of principal executive offices and Zip Code) Registrant's telephone number, including area code: (818) 226-1968 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits Exhibit Number Description - -------------- ----------------------------------------------- 99.1 Press Release issued by HemaCare, dated August 13, 2004 99.2 Transcript of the presentations given by Judi Irving, CEO, and Robert S. Chilton, CFO,at a conference call conducted by HemaCare Corporation on August 13, 2004 ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On August 13, 2004, HemaCare Corporation issued a press release announcing financial results for the second quarter of 2004. A copy is attached as Exhibit 99.1 to this report and is incorporated herein by reference. On August 13, 2004, HemaCare Corporation held an investor conference call discussing the financial results for the second quarter of 2004. A transcript of the presentations given by Ms. Judi Irving, CEO, and Robert S. Chilton, CFO, in the call is attached to this report as Exhibit 99.2 and is incorporated herein by reference. The information in this Current Report on Form 8-K, including the exhibits, will not be treated as "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section. This information will not be incorporated by reference into a filing under the Securities Act of 1933, or into another filing under the Exchange Act, unless that filing expressly refers to specific information in this report. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: August 13, 2004 HEMACARE CORPORATION /s/ Robert S. Chilton ------------------------- Robert S. Chilton Chief Financial Officer EXHIBIT INDEX Exhibit Number Description - -------------- ----------------------------------------------- 99.1 Press Release issued by HemaCare, dated August 13, 2004 99.2 Transcript of the presentations given by Judi Irving, CEO, and Robert S. Chilton, CFO, at a conference call conducted by HemaCare Corporation on August 13, 2004 EX-99.1 2 pr2q04.txt PRESS RELEASE DATED AUGUST 13, 2004 EXHIBIT 99.1 LOGO N E W S R E L E A S E For Immediate Release Contact: HemaCare Corporation JoAnn Mannise, Director of Investor Relations 877-310-0717 www.hemacare.com RELEASE DATE: August 13, 2004 HEMACARE REPORTS SECOND QUARTER FINANCIAL RESULTS ________________________________________________________________ LOS ANGELES - - - - HemaCare Corporation (OTC Bulletin Board: HEMA.OB) today announced second quarter 2004 results of operations that resulted in a profit of $488,000, or $0.06 per share basic and diluted, on revenue of $6,921,000. This represents the third consecutive profitable quarter since the implementation of management's restructuring plan in the third quarter of 2003, and the most profitable quarter since the fourth quarter of 2000 when the Company recognized a $2.95 million benefit from income taxes. The restructuring plan resulted in the closure of several under-performing donor centers, principally located in the eastern United States, and a reduction in overhead expenses. Revenue in the second quarter of 2004 was essentially flat compared to the $6,937,000 reported in the same period of 2003. Blood products revenue decreased $57,000 to $5,036,000, or 1.1%, as a result of the elimination of revenue generated by operations closed as part of the restructuring plan. Blood products revenue from ongoing donor centers increased $810,000, or 20.8%, to $4,713,000 from $3,903,000 reported in the second quarter of 2003. Blood services revenue in the quarter increased $41,000, or 2.2%, to $1,885,000 as a result of an increase in the number of therapeutic apheresis procedures performed in California that have a higher average per procedure price than the other markets serviced by the Company, a change in procedure mix to higher average price procedures and an increase in the average surcharge associated with each procedure performed. The second quarter results produced a gross profit of $1,503,000 compared with a gross profit of $452,000 for the same period in 2003. The gross profit percentage in the quarter increased to 21.7% from 6.5% for the same period in 2003. This improvement in gross profit is the result of increases in product prices, increased operational efficiencies realized from higher volumes, a change in therapeutic procedure mix to higher - more - margin procedures and the closure in the third and fourth quarters of 2003 of several under-performing donor centers. The Company has taken steps to improve pricing as part of the renewal of the Company's hospital blood supply contracts. Operational efficiencies resulting from higher volumes at the ongoing donor centers is one of the benefits from the current strategy to grow sales volume at existing facilities rather than opening new donor centers. For the six months ended June 30, 2004, the Company generated $734,000 of net income, or $0.09 per share both basic and diluted, on revenue of $13,657,000, compared with a net loss of $264,000, or $0.03 loss per share, on revenue of $13,868,000, during the same period of 2003. Commenting on the second quarter results, Judi Irving, President and Chief Executive Officer, stated, "We are very pleased and proud of our accomplishments over the past year. We successfully completed the implementation of our restructuring plan to eliminate several under-performing donor centers, and the renewed focus on our core businesses has substantially improved operations and overall profitability. The Company has had three profitable quarters following the implementation of the restructuring plan. In addition, on a pre-tax basis, the second quarter of 2004 represents the most profitable quarter for HemaCare in over fifteen years. We intend to continue to improve the Company's revenue potential and operational efficiency. Our strategy is to generate additional revenue from our existing operations, which we feel have the potential to increase profitability in the future, and to invest in important deferred infrastructure projects. In addition, we are exploring new business opportunities to leverage our existing competencies and increase the utilization of our facilities." HemaCare will be holding an interactive investor conference call on Friday, August 13, 2004 at 1:00 pm (Eastern Daylight Time). Judi Irving, President and CEO, and Robert Chilton, Executive Vice President and CFO, will review the second quarter 2004 financial results. To participate in the call, please call 800-309-8563 and ask to join HemaCare's second quarter earnings conference call. A recording will be available two hours following the call through midnight, August 20, 2004 that can be replayed by calling 800- 642-1687, ID number 9269616. ABOUT HEMACARE CORPORATION Founded in 1978, HemaCare is a national provider of blood products and services, and is believed to be the only publicly traded company engaged in the blood industry in the United States. HemaCare is licensed by the FDA and accredited by the American Association of Blood Banks. The Company focuses on providing cost effective, high quality solutions to the blood-related needs of U.S. hospitals and others. This press release contains "forward-looking statements" within the meaning of the term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Additional written or oral forward-looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission or otherwise. Statements contained herein that are not historical facts are forward-looking statements pursuant to the safe harbor provisions referenced above. Forward-looking statements are inherently subject to risks and uncertainties some of which cannot be predicted or quantified. Such risks and uncertainties include, without limitation, the risks and uncertainties set forth from time to time in reports filed by the Company with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlined in the forward-looking statements contained herein. The Company undertakes no obligation to publicly release any revision to these forward-looking statements made to reflect events or circumstances after the date hereof. - more - HemaCare Corporation Condensed Consolidated Data (Unaudited)
Three Months Ended June 30, Six Months Ended June 30, 2004 2003 2004 2003 ------------ ------------ ------------ ------------ STATEMENT OF OPERATIONS Revenues....................... $ 6,921,000 $ 6,937,000 $13,657,000 $13,868,000 Gross Profit................... $ 1,503,000 $ 6,485,000 $10,723,000 $12,416,000 ------------ ------------ ------------ ------------ General and administrative expenses...................... $ 1,015,000 $ 906,000 $ 2,200,000 $ 1,892,000 Income (loss) before income taxes......................... $ 488,000 $ (454,000) $ 734,000 $ (440,000) ============ ============ ============ ============ Net income (loss).............. $ 488,000 $ (272,000) $ 734,000 $ (264,000) ============ ============ ============ ============ Basic and diluted earnings (loss) per share.............. $ 0.06 $ (0.04) $ 0.09 $ (0.03) ============ ============ ============ ============ Weighted average shares oustanding - basic............ 7,756,060 7,751,060 7,756,060 7,751,060 ============ ============ ============ ============ Weighted average shares outstanding - diluted......... 8,089,078 7,751,060 7,999,449 7,751,060 ============ ============ ============ ============
June 30, 2004 December 31, 2003 ------------- ----------------- BALANCE SHEETS Assets - ------ Cash and cash equivalents........... $ 1,399,000 $ 935,000 Other current assets................ 4,197,000 4,030,000 Non-current assets.................. 3,059,000 3,321,000 ------------ ------------ Total assets........................ $ 8,655,000 $ 8,286,000 ============ ============ Liabilities and Shareholders' Equity - ------------------------------------ Current liabilities................. $ 3,654,000 $ 3,786,000 Long-term liabilities............... 856,000 1,089,000 Shareholders' equity................ 4,145,000 3,411,000 ------------ ------------ Total liabilities and shareholders' equity............................. $ 8,655,000 $ 8,286,000 ============ ============
### EX-99.2 3 scpt2q04.txt CONFERENCE CALL SCRIPT DATED AUGUST 13, 2004 EXHIBIT 99.2 2nd Quarter 2004 Results Conference Call Script JoAnn Mannise: Good afternoon. My name is JoAnn Mannise, and I am the Director of Investor Relations at HemaCare. I would like to welcome everyone here today to our second quarter 2004 Financial Results Conference Call. With us here today is Judi Irving, HemaCare's President and Chief Executive Officer, and Robert Chilton, Executive Vice President and Chief Financial Officer. During this call there will be forward-looking statements on a number of subjects that are based on the Company's current expectations and are subject to various risks and uncertainties. Actual results could differ materially. Our press releases and quarterly reports on Form 10-Q, as well as our other SEC filings, identify factors that could affect those results. I refer you to those documents. We do not undertake to update forward-looking statements to reflect later events and circumstances or actual outcomes. And now I would like to introduce Judi Irving who will start with our prepared comments. Judi Irving: Thank you, JoAnn. Welcome to all of you. Today we announced our financial results for the second quarter ended June 30, 2004. We reported net income of $488,000, which represents our third consecutive quarter of profitable results since the implementation of our restructuring plan in the third quarter of 2003 and, on a pretax basis, the most profitable quarter in over 15 years. On a year to date basis for the first six months, our net income has improved by nearly one million dollars compared to the first six months of 2003. Our improved performance not only reflects the elimination of the financial drain associated with the donor centers we closed as part of the restructuring plan, but more importantly reflects the improved performance of our ongoing facilities now that we are able to focus our efforts on improving our core businesses. 1 2 Our ongoing blood product operations reported a revenue gain of $810,000, or 20.8%, to $4,713,000 compared with the second quarter of last year. This increase essentially replaced the revenues lost by the closure of under- performing donor centers. Our blood services business segment also reported a revenue gain of $41,000 or 2.2%, despite a decrease of 11.4% in the number of therapeutic procedures performed during the quarter compared to last year. This result is primarily attributable to increased procedure volume in the California market, which has a higher average price than the other markets we serve, and an increase in the surcharges per procedure performed. Although we are very pleased with the performance of this business unit, past experience has shown that the number of procedures and product mix in this business segment are highly variable. We expect this fluctuation in TA volume to continue for the foreseeable future. We are now well underway on implementing the primary elements of our long-term strategy to increase sales volume at our existing operations. In addition, we plan to explore other business opportunities that will add to our bottom line through increased utilization of our existing capacity, and take advantage of our core competencies. In addition, the recent improvement in profitability provides us with the opportunity to invest in several important deferred infrastructure projects. I would like to now turn the call over to Bob Chilton, who will review the operating results in more detail. Bob Chilton Thank you, Judi. I would like to provide some additional detail information regarding the financial results we announced earlier today. 2 3 As Judi mentioned, HemaCare's second quarter results produced net income of $488,000, or $.06 per share basic and diluted, compared with a net loss of $272,000 for the second quarter of 2003. This represents the best quarterly result for HemaCare in the past 15 years, with the exception of the fourth quarter of 2000 when the Company recognized nearly $3 million in income tax benefit. The Company finished the quarter with a total decrease in revenue of only $16,000 to $6,921,000, or .2%, compared with the second quarter of 2003. As Judi mentioned, this is mostly as a result of the elimination of revenue from donor centers closed as part of the restructuring plan implemented in the third quarter of 2003. The Company's ongoing blood product operations generated $810,000 more revenue, or a 20.8% increase, during the quarter when compared with the same period in 2003. This is primarily as a result of a 28.9% increase in single donor platelet volume during the quarter, while whole blood volume remained relatively flat. In addition, the Company increased selected prices for some of our blood products, which has contributed to the increase in ongoing operations revenue. The blood services segment generated $41,000 more revenue in the quarter, or 2.2%, to $1,885,000, compared with the second quarter of 2003. The Company experienced an 11.4% decrease in the number of therapeutic procedures performed during the quarter to 1,489, compared with 1,680 for the same period in 2003. This decrease is attributable to the closure of some blood service operations in Illinois, North Carolina, New Jersey and Pennsylvania, as well as a decline in the number of referrals in the New York market. As we have noted in the past, our experience is that the number of procedures perform can fluctuate from quarter to quarter. Gross profit for the quarter from the blood products segment increased $866,000, from a small operating loss of $9,000 to a gross profit of $857,000 compared with 2003. This was due to increases in product pricing, the closure of under-performing donor centers in late 2003, and increased operating efficiencies derived from larger sales volumes at the ongoing donor centers. During the second quarter of 2003, the closed donor centers generated operating losses of $140,000. The closure of these facilities eliminated these operating losses in the first quarter of 2004. In addition, as a result of increasing 3 4 sales volumes at the ongoing donor centers, gross profits from these centers increased $675,000, to $806,000, representing a 515.3% improvement. The gross profit percentage for the ongoing donor centers during the second quarter improved to 17.1%, compared with 3.4% during the same period in 2003. During the second quarter of 2004, the Company was informed that the donor center management contracts with Dartmouth- Hitchcock Medical Center in Lebanon, New Hampshire and with Presbyterian Intercommunity Hospital in Whittier, California, would not be renewed. As a result, the Company ceased to manage these donor centers in June 2004. Therefore, we included the results from these donor centers in the closed center category for the quarter and six month periods representing revenue of $372,000 and $888,000 respectively in 2004. General and administrative expenses increased in the second quarter of 2004 by $109,000, or 12%, when compared with 2003. This is the result of several factors including an increase in accrued management bonuses of $78,000, an increase in insurance expense of $52,000, and an increase in accrued 401(k) employer matching contribution expense compared with the same period in 2003. The increase in accrued management bonuses is the result of the achievement of profitability targets and other improvements in Company operations compared with prior years. The increase in insurance expense was the result of a substantial increase in professional liability insurance when this policy was renewed in mid 2003. Finally, the increase in accrued 401(k) matching expense is the result of the overall improved performance of the Company and the expectation that the Company will make a matching contribution to the 401(k) plan as a result. The balance sheet as of June 30, 2004 shows cash and cash equivalents of $1,399,000 which is comparable to $935,000 as of the end of 2003. Working capital increased substantially to $1,942,000 from $1,179,000 as of the end of 2003. The main reason for this improvement is an increase in cash and relatively little change in current 4 5 liabilities. In fact, accounts payable increased $261,000 since the end of 2003, which contributed to the increase in cash; however, this was mostly the result of the timing of vendor payments relative to the quarter end, not an intentional decision by management to age vendor payables. The reason for the improvement in working capital is the payoff of the Comerica Bank line of credit of $450,000 since the end of 2003 that was classified in current obligations under notes payable. Net accounts receivable decreased to $3,047,000 from $3,128,000 as of December 31, 2003. The Company experienced a decrease in the days sales outstanding statistic since the end of 2003 to 40 days compared with 42 days as of December 31, 2003. Management's efforts to aggressively pursue outstanding receivables over the past year continues to produce positive results since the days sales outstanding statistic stood at 57 days as of June 30, 2003. This concludes my prepared remarks regarding the second quarter 2004 financial results. I would like to now turn the call back over to Judi for some concluding remarks. Judi Irving Thank you Bob. In closing, we are very pleased with the improvement in profitability that we have accomplished over the past three quarters. We feel that the record profits we reported for the quarter clearly demonstrate that HemaCare is moving in the right direction. We continue to see the results of our efforts to implement a strategic plan to increase revenue at our existing operations, and we are now beginning to explore other business opportunities to improve our future profitability. This concludes our prepared remarks. We are now prepared to open the conference for your questions. Operator, would you please provide the callers with the necessary instructions. 5 -----END PRIVACY-ENHANCED MESSAGE-----